The numbers are in! Not surprisingly, the evolution of streaming went into overdrive in 2020, and that trend is continuing in 2021. Over 70 million U.S. homes now stream video to a connected television, reaching an all-time weekly high of more than 1 billion hours streamed. And it’s not just commercial-free subscription-based platforms (SVOD) that are seeing an increase; time spent streaming ad-supported video (AVOD) is outpacing big-name SVOD (no ads) viewing. According to Nielsen, as of early 2021, over a third of U.S. households with streaming capability have watched ad-supported video on demand. Nielsen also estimates that streaming platforms will total 210 million subscribers by 2024, which would be an overwhelming number of consumers and a major shift in media habits. If your dealership is still hopelessly devoted to linear TV, and linear TV only, you’re missing the chance to engage audiences that are increasingly only reachable via streaming.
Now, if you think this means that you should pour all your TV ad dollars into streaming only, that’s not the case. It’s time to stop separating the two budgets and think in a more omnichannel way, like viewers do – it’s all TV. The truth is, as we discussed in our 60-Second Automotive Update featured in “Broadcast TV Delivers Online Shoppers” blog post, linear TV is still a driving force even in a digital era. However, due to the limited supply of airtime on linear and with the proliferation of new ad-supported services, car dealers should include both in their media marketing mix.
If that’s not enough to convince you to jump on the streaming bandwagon, maybe this will:
Your ads are unavoidable. With streaming, you’re able to reach your audience on any type of connected TV or device with full-screen ads that cannot be skipped and have an average completion rate of 97%. While you might think the inability to skip or fast-forward commercials would be irksome for most viewers, a video trends report from TiVo actually found that nearly three-quarters of viewers using free streaming or broadcast platforms either “like” or “don’t mind” ads.
The ad-supported video on demand market is growing. Even though the majority of streaming still lies with subscription video on demand, such as Netflix and Disney+, consumers have a limit to how many subscription services they’re willing to pay for. No subscription fees and expanding content libraries seem to be driving factors in the rise of ad-supported video on demand, like The Roku Channel and various network streaming services. According to Nielsen, overall streaming has gone from 18% to 25% over the past year. Although one-third of streaming capable homes access between three and four paid subscription services per month, nearly half of homes also use a free ad-supported service as well.
Connected TV (CTV) is more effective. According to a recent study by Tremor Video and Unruly, nearly three-quarters of U.S. digital advertising professionals believe that connected TV reaches target audiences more effectively than linear TV alone. 75% of the respondents believe connected TV has been more important to their business’ marketing success during the pandemic, and 94% believe that CTV campaigns successfully meet their marketing objectives. The Tremor research also suggests that connected TV is more effective in driving consumer actions: consumers exposed to CTV advertising are 71% more likely to advocate and tell a friend about a brand than consumers exposed to linear TV only, with 52% more likely to buy a product and 45% more likely to visit a store or product website.
Advancements in streaming measures are coming. Lack of standard measurements across platforms, data-sharing limitations, the difficulty in tracking viewing behaviors in ad-free services, and the issues with measuring the results of ads that don’t typically lead directly to a click or other type of conversion, have all been the proverbial thorns in advertisers’ sides. However, through technological improvements, such as targeting and identity options, the ability to bring data in, and cross-device measurement, marketers will soon have access to a more comprehensive view of streaming consumption. For example, Nielsen just announced the launch of Nielsen Streaming Video Ratings, a syndicated service reported via Nielsen’s premier audience insights platform, that will provide unique visibility into total viewership and advanced audience demographic insights by streaming platform alongside linear TV ratings. The new service will allow advertisers to know which demos are engaging with the content, where content opportunities may be, which platforms are gaining momentum, and which categories are driving the most engagement.
So, you’re ready to take the plunge into streaming. Now what? Here are a few tips for more effective streaming campaigns:
Don’t cheap out on production. Just because the digital format may not require massive broadcast-worthy video files, that doesn’t mean the production quality of your commercials should be any less. As a matter of fact, the CTV audience is typically lower on the buying funnel than linear viewers, so you should make every effort to impress them more. As mentioned above, CTV ad campaigns work best in conjunction with linear TV campaigns, so if you adhere to this rule, you should be able to use the same creative for both.
Visuals are important, but don’t forget the audio. TV no longer has our undivided attention. An estimated 88% of Americans use a second screen, primarily their smartphones, while watching TV. Whether it’s to look up information about the programs they watch, text friends and family, play games, or to catch up on their social media feeds, one simple fact remains – they’re probably not exactly glued to the TV screen, especially during commercial breaks. This is why it’s imperative that your spots (for streaming and linear TV alike) have a compelling audio message. Your visuals and graphics may be the greatest in the whole history of advertising, but a stock music track with no voiceover doesn’t exactly scream, “hey, watch this!” Don’t get me wrong, graphics are extremely important, but unless you provide the viewer with a reason to break away from their second screen, you’re wasting your money.
Offer a variety of creative. If you’re like me, the most annoying thing about streaming ad-supported TV shows is the redundancy of the commercials. More often than not, we see the same ads in the same order in every single commercial break. Break up the monotony by rotating multiple ads – at least two to three, ideally four to eight. To save on production expenses, many dealers like to use the same open and close while switching out the middle (“donut” spots). This method not only allows you to highlight multiple products; it also increases recall and recognition of your brand.
For more information on how your dealership can effectively implement streaming as part of your marketing mix to grow your market share, as well as other automotive marketing strategies, contact Intermark Automotive today!
by Shea Posey, Senior Account Executive/Blog Writer/Compliance & Co-op Specialist
Learn more about Brand Strategy
Learn more about Marketing Psychology
Learn more about Video and Audio Production
Learn more about Print and Digital Production
Learn more about Media Planning and Placement